XN000022-1985-02-01 — Page 2

FRIDAY, FEBRUARY 1, 1985

CHANGES PROPOSED TO INLAND REVENUE LAW

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THE GOVERNMENT PROPOSES TO AMEND A NUMBER OF PROVISIONS OF THE INLAND REVENUE ORDINANCE, AS SET OUT IN THE INLAND REVENUE (AMENDMENT) BILL 1985, PUBLISHED IN THE GAZETTE TODAY.

THE PROPOSALS ARE:

*TO AMEND SECTION 23(2), WHICH REFERS TO THE

DETERMINATION OF THE ASSESSABLE PROFITS OF LIFE INSURANCE COMPANIES, TO TAKE ACCOUNT OF AMENDMENTS MADE TO OTHER STATUTORY PROVISIONS, RELATING TO LIFE INSURANCE BOTH IN HONG KONG AND THE UNITED KINGDOM.

* TO AMEND SECTION 51(4B) BY INCREASING FROM

$2 000 TO $5 000 THE MAXIMUM PENALTY FOR ANY PERSON WHO, WITHOUT REASONABLE EXCUSE, FAILS TO COMPLY WITH A NOTICE TO SUPPLY INFORMATION CALLED FOR BY AN ASSESSOR OR INSPECTOR OR TO ATTEND FOR EXAMINATION BY AN ASSISTANT COMMISSIONER.

A GOVERNMENT SPOKESMAN SAID THAT THE PRESENT MAXIMUM PENALTY WAS FIXED IN 1965 AND INFLATION HAD GREATLY REDUCED ITS DETERRENT EFFECT.

* TO AMEND SECTION 65(1), TO INCREASE THE

NUMBER OF DEPUTY CHAIRMEN OF THE BOARD OF REVIEW FROM TWO TO SIX AND TO INCREASE THE SIZE OF THE PANEL OF MEMBERS FROM 75 TO 100.

THE SPOKESMAN EXPLAINED THAT THIS PROPOSAL RELATES TO APPOINTMENTS TO THE INLAND REVENUE BOARD OF

REVIEW WHICH HEARS APPEALS FROM TAXPAYERS DISSATISFIED WITH DETERMINATIONS MADE BY

THE COMMISSIONER OF INLAND REVENUE OF OBJECTIONS LODGED AGAINST ASSESSMENTS.

THE NUMBER OF APPEALS TO THE BOARD HAS CONTINUED TO RISE AND CURRENTLY OVER 300 CASES, INVOLVING A TOTAL OF MORE THAN $500 MILLION IN TAX HELD OVER AWAITED HEARING. THE PROPOSAL IS TO REDUCE THE WAITING TIME FOR THE HEARING OF TAX APPEALS.

* TO AMEND SECTION 68(9), TO INCREASE THE

MAXIMUM LEVEL OF COSTS WHICH AN UNSUCCESSFUL APPELLANT MAY BE ORDERED TO PAY TO $1 000, FROM THE PRESENT $100.

/THIS SECTION